TSC Ratings TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety-first" approach aims to reduce risk while achieving performance on a total return basis.Each business day, we compile a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap. Today, small-cap stocks are in the spotlight. These companies have market capitalizations between $50 million and $500 million and receive buy ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate. Village Super Market ( VLGEA) operates a chain of ShopRite supermarkets in the United States. We upgraded the stock to buy on December 5, 2006. Fiscal third-quarter revenue increased 7% to $293 million as EPS climbed 27% to 47 cents. Same-store sales, an important gauge of year-over-year improvement, jumped more than 7%. The company has a modest $36 million debt load and more than $47 million in cash. Management expects a modest improvement in revenue and earnings in the fourth quarter. Shares of Village Super Market have enjoyed a 7% climb in 2009 and are up 17% from their March low. The stock trades at a price to earnings ratio of 17, which is roughly in line with the market, and offers a lackluster 2.8% dividend yield. Diamond Foods ( DMND) processes and markets culinary, snack, in-shell and ingredient nuts that are sold through two main product lines: Diamond of California and Emerald Nuts. We upgraded Diamond to buy in April. For the third quarter of fiscal 2009, revenue ascended 11% year-over-year to $111 million as EPS improved to 16 cents, establishing an eight quarter streak of year-over-year growth. Net operating cash flow increased 127% to $8.75 million and return on equity improved slightly. Diamond anticipates full-year non-GAAP EPS between $1.31 and $1.36 and net sales between $550 million and $565 million. Guidance was raised on the basis of third quarter results.